That nationwide competition does not simply judge states based on how well students or schools are performing. Instead, the competition evaluates each state's proposed education reforms, as well as the political support for such changes.

Alabama's application failed on numerous counts, although Williams seized on one. Alabama does not have a law that allows for charter schools.

Williams, who campaigned on charter schools two years ago, now hopes he's found momentum. A bill allowing charter schools died in the Legislature this year. Williams said he plans to scale back, sponsoring a bill in the next session to create a few pilot sites around the state, rather than allowing unlimited charters.

Charters are independent public schools that are supported by tax dollars, but operate apart from traditional oversight of city or county school boards. Gov. Bob Riley, a proponent, has argued they could increase innovation and flexibility in low-performing areas. Opponents in Montgomery have argued charters can set up a dual system and foster segregation.

According to the National Alliance for Public Charter Schools, Alabama is just one of 10 states that doesn't allow such efforts. Riley and state Superintendent Joe Morton this summer also pointed to the lack of charters as the main reason Alabama failed to win federal money.

That's because Alabama lost a lot of points in a lot of other areas, including limited use of data to improve instruction, not providing alternate routes for teacher certification, not rewarding teachers based on effectiveness, not equitably distributing the best teachers and not showing progress in closing achievement gaps.

Federal reviewers, in their conclusion, wrote that Alabama submitted an ambitious plan for reform, but lacked "convincing evidence of strong support from all stakeholders." The reviewers specifically mention the opposition from the teachers' Alabama Education Association for certain reforms, including charter schools.

When asked what difference charters would make given so many areas for improvement, Williams said: "This is a bigger picture than just Race To The Top funds."

Yet surrounding states have received federal dollars. Tennessee won $500 million in the first round of Race To The Top grants in March. Florida won $700 million and Georgia $400 million in the second round this month. Federal reviewers specifically praised the charter school programs in Georgia and Florida.

Williams suggested that Riley form a task force to visit the winning states and find out what can be done in Alabama. But he also said nothing will change until people demand a change.

"Ultimately, its about parents," said Williams on Monday. "The AEA did play a role in defeating the charter legislation, but I can't blame them for Alabama finishing last in Race To The Top."